Global News ,Market Trends ,Supply Chain,Regulatory,Technology from May 12 to May 17 , 2025

Global Trade and Procurement Updates

Merck Cancels Surcharge on Chinese Orders After US-China Tariff Deal — May 15

Following a US-China tariff reduction agreement, German life science company Merck canceled temporary surcharges on Chinese orders. The deal reduced US tariffs on Chinese goods from 145% to 30%, and Chinese tariffs on US goods from 125% to 10%, effective for 90 days. This cancellation benefits supply chains in the pharmaceutical sector, including Shanghai BioNoma and other cross-border scientific material-dependent firms.

EU Proposes "Europe First" Procurement Policy

The European Commission proposed a “Europe First” procurement initiative allowing member states to prioritize local suppliers in key industries and technologies. The goal is to shield European industries from low-cost foreign competition and reduce import dependence. However, the policy may conflict with WTO rules and faces legal challenges.

Global Chemical Prices Under Pressure

The UK’s Chartered Institute of Procurement & Supply (CIPS) warned consumers could face price increases of 20% for daily necessities, including chemicals, electronics, and machinery. Key factors include geopolitical tensions, supply chain disruptions, and cybersecurity risks. Middle East unrest caused shipping companies to reroute around the Cape of Good Hope, increasing freight costs and delivery times. Potential labor strikes at US East Coast ports exacerbate supply instability.

Industry Highlights and Supply Chain Changes

China Tightens Rare Earth Export Controls, Disrupting Global Supply Chains

China imposed stricter export controls on seven rare earth elements and permanent magnets critical to EVs, wind power, and military uses. Although some export permits have been approved, slow and opaque approvals limit production capacity in Europe and the US. Companies like Tesla, Ford, Lockheed Martin, and Volkswagen are affected, with concerns over delays and military-use restrictions. China’s strategic ambiguity aligns with geopolitical goals, driving Western efforts to reduce dependency.

MP Materials and Saudi Ma’aden Agree to Develop Rare Earth Supply Chain

US rare earth producer MP Materials signed a memorandum of understanding with Saudi Ma’aden to jointly develop Saudi Arabia’s rare earth supply chain, supporting Saudi’s ambition to become a global critical minerals hub. This aligns with global efforts to secure domestic mineral resources for AI, EVs, and advanced tech.

Indian Chemical Industry Poised to Benefit from European Sector Challenges

B&K Securities analysis highlights that ongoing European chemical manufacturing difficulties create opportunities for Indian firms to increase market share and strengthen global presence.

Market Trends

Eastman Chemical Stock Rises

Eastman Chemical Company’s stock rose 6.80% to close at $82.77, marking three consecutive days of gains. Despite the rally, the stock remains 27.71% below its 52-week high of $114.50 set on September 27, 2024.

Green Chemistry and Circular Economy Transition Accelerate

Chemical companies are increasing investments in green chemistry, recycling technologies, bio-based feedstocks, and renewable energy to reduce environmental impact, comply with regulations, and open new revenue streams.

Digital Transformation Continues

AI, machine learning, automation, digital twins, and predictive maintenance remain key technologies to optimize production, enhance supply chain resilience, and accelerate R&D.

Supply Chain Resilience and Localization

Amid geopolitical tensions and disruptions, firms promote reshoring, diversified suppliers, and regional hubs to reduce global dependency risks.

Regulatory and Environmental

US EPA Relaxes PFAS Drinking Water Limits — May 14

The US Environmental Protection Agency (EPA) eased drinking water limits on four new PFAS chemicals and postponed removal deadlines for PFOA and PFOS until 2031. The move favors chemical and water utilities industries but faced strong opposition from environmental groups and affected communities, citing public health concerns. PFAS are linked to cancer and birth defects, impacting over 200 million Americans.

Denka Shuts Louisiana Plant Amid Environmental Pressure

Denka announced an indefinite shutdown of its synthetic rubber plant in the “Cancer Alley” region due to high vinyl chloride emissions risks and economic losses. Despite over $35 million invested in emission reductions, levels remain above federal safety standards.

Explosion at Spanish Chemical Plant Triggers Health Alert

An explosion at the Alcalá de Guadaíra chemical plant near Seville, Spain, injured two people. Approximately 25,000 local residents were advised to stay indoors, close windows, and wear masks to avoid harmful smoke exposure.

Technology and Industry Developments

PFAS Destruction Technologies Innovate

Researchers develop supercritical water oxidation, hot caustic treatment, and UV oxidation techniques showing promise in breaking down persistent PFAS compounds to reduce environmental and health risks.

Growth in Electronic Chemicals and Materials Demand

The semiconductor industry and smart technologies expand demand for high-purity solvents and advanced materials.

CATL Expects 50% Electric Heavy-Duty Truck Penetration in China by 2028

CATL chairman Zeng Yuqun stated that electric vehicles will rise from 10% of China’s heavy-duty truck sales in 2024 to 50% by 2028. The company’s new 60 GWh battery and energy storage facility in Shandong will support this transition, aiming to become a trillion-yuan lithium battery cluster within two years.

India’s Himadri Speciality Chemical Plans Investment in US Lithium Battery Firm

Himadri Speciality Chemical is negotiating to acquire a 10-12% stake in the US-based International Battery Company with an investment of $10-12 million, aiming to expand its battery technology market presence.